Posted on: 28th Mar, 2007 02:40pm
In the competitive market place of mortgage lending, table funding plays a key role to establish a level playing field for the small loan originators. This form of wholesale lending has been designed in response to the market conditions and the requirements of the loan originators. Table funding can indeed be beneficial for the small firms who either do not possess a warehouse credit line or whose credit line is too small to handle their loan pipelines. With the help of table funding small firms can restore their identity in the competitive local market.
Recognizing the role of mortgage brokers in the mortgage industry, table funding is offered to the mortgage brokers to originate, process and close loans in their names. Though mortgage brokers can process and select loans but at the time of settlement they transfer the loans to the lender.
Here, it is to be noted that table funding is not applicable for all the states in the country. This practice is applicable in wet states only. Wet states are those states which have Wet Settlement laws, which require the lending banks to pay out the funds within a period of time.
There are HUD laws pertaining to table funding--some of which can affect table funding adversely. As per Real Estate Settlement Procedures Act disclosure regulations, borrowers are to be informed about such payments to broker made as servicing released premiums which brokers are not in favor of.
Hi Laura,
Welcome to Mortgagefit discussion board.
Table funding is an option which allows brokers approved for Wholesale Traditional Lending to originate, process and close loans in their name. But at the time of settlement, the loan is transferred to the lender. And the lender simultaneously advances funds for the loan. This option meets the needs of brokers who want to maintain good customer relationship by closing loans in their own name.
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
Table funding is an option which allows brokers approved for Wholesale Traditional Lending to originate, process and close loans in their name. But at the time of settlement, the loan is transferred to the lender. And the lender simultaneously advances funds for the loan. This option meets the needs of brokers who want to maintain good customer relationship by closing loans in their own name.
Do let me know if you have any other questions.
Thanks
Blue
Well... I guess it's the lender who would be able to let you know how the whole process works...
"Well... I guess it's the lender who would be able to let you know how the whole process works..."
The whole point of "table funding" appears to bypass any sort of traditional lending and also appears to rely on a secondary pool of wholesale lenders and further tied an MBS account.
The whole point of "table funding" appears to bypass any sort of traditional lending and also appears to rely on a secondary pool of wholesale lenders and further tied an MBS account.
In the State of Colorado, do the date of loan documents, the date they are signed and the date of closing all have to be the same date?
Hi Guest,
As far as I know, the date on loan documents and the date of closing may be different. Nevertheless, it will be better if you could show the documents to a real estate attorney and take his opinion in this matter.
As far as I know, the date on loan documents and the date of closing may be different. Nevertheless, it will be better if you could show the documents to a real estate attorney and take his opinion in this matter.